1
,auditing jassurance jservices j9th jedition
Test Bank forAuditing & Assurance Services 9th Edition by Timothy
j j j j j j j j j j
Louwers, Jerry Strawser
j j j
Chap 01 9e j j
Answers Included
j
1) The jaudit jobjective jthat jall jtransactions jand jaccounts jthat jshould jbe jpresented jin jthe
financial jstatements jare jin jfact jincluded jis jrelated jto jwhich jof jthe jPCAOB jassertions?
j
A) Existence
B) Rights jand jobligations
C) Completeness
D) Valuation
2) Cutoff jtests jdesigned jto jdetect jpurchases jmade jbefore jthe jend jof jthe jyear jthat jhave
jbeen jrecorded jin jthe jsubsequent jyear jprovide jassurance jabout jmanagement's
jassertion jof
A) presentation jand jdisclosure.
B) completeness.
C) rights jand jobligations.
D) existence.
3) During jan jaudit jof jan jentity's jstockholders' jequity jaccounts, jthe jauditor jdetermines
jwhether jthere jare jrestrictions jon jretained jearnings jresulting jfrom jloans, jagreements, jor
jstate jlaw. jThis jaudit jprocedure jmost jlikely jis jintended jto jverify jmanagement's jassertion jof
A) existence jor joccurrence.
B) completeness.
C) valuation jor jallocation.
D) presentation jand jdisclosure.
4) The jconfirmation jof jan jaccount jpayable jbalance jselected jfrom jthe jgeneral jledger
provides jprimary jevidence jregarding jwhich jmanagement jassertion?
j
A) Completeness
B) Valuation
C) Allocation
D) Existence
2
,5) What jtype jof jevidence jwould jprovide jthe jhighest jlevel jof jassurance jin jan
attestation jengagement?
j
A) Evidence jsecured jsolely jfrom jwithin jthe jentity.
B) Evidence jobtained jfrom jindependent jsources.
C) Evidence jobtained jindirectly.
D) Evidence jobtained jfrom jmultiple jinternal jinquiries.
6) Which jof jthe jfollowing jmanagement jassertions jis jan jauditor jmost jlikely jtesting jif jthe
jaudit jobjective jstates jthat jall jinventory jon jhand jis jreflected jin jthe jending jinventory
jbalance?
A) The jentity jhas jrights jto jthe jinventory.
B) Inventory jis jproperly jvalued.
C) Inventory jis jproperly jpresented jin jthe jfinancial jstatements.
D) Inventory jis jcomplete.
7) An jauditor jtraces jthe jserial jnumbers jon jequipment jto ja jnonissuer's jsubledger. jWhich jof
the jfollowing jmanagement jassertions jis jsupported jby jthis jtest?
j
A) Valuation jand jallocation
B) Completeness
C) Rights jand jobligations
D) Presentation jand jdisclosure
8) An jauditor jhas jsubstantial jdoubt jabout jthe jentity's jability jto jcontinue jas ja jgoing jconcern jfor
ja jreasonable jperiod jof jtime jbecause jof jnegative jcash jflows jand jworking jcapital
jdeficiencies. jUnder jthese jcircumstances, jthe jauditor jwould jbe jmost jconcerned jabout jthe
A) control jenvironment jfactors jthat jaffect jthe jorganizational jstructure.
B) correlation jof jdetection jrisk jand jinherent jrisk.
C) effectiveness jof jthe jentity's jinternal jcontrol jactivities.
D) possible jeffects jon jthe jentity's jfinancial jstatements.
9) Which jof jthe jfollowing jtypes jof jaudit jevidence jprovides jtheleast jassurance jof jreliability?
A) Receivable jconfirmations jreceived jfrom jthe jclient's jcustomers.
B) Prenumbered jreceiving jreports jcompleted jby jthe jclient's jemployees.
C) Prior jmonths' jbank jstatements jobtained jfrom jthe jclient.
D) Municipal jproperty jtax jbills jprepared jin jthe jclient's jname.
3
, 10) Which jof jthe jfollowing jis ja jmanagement jassertion jregarding jaccount jbalances jat jthe
period jend?
j
A) Transactions jand jevents jthat jhave jbeen jrecorded jhave joccurred jand jpertain jto
jthe jentity.
B) Transactions jand jevents jhave jbeen jrecorded jin jthe jproper jaccounts.
C) The jentity jholds jor jcontrols jthe jrights jto jassets, jand jliabilities jare jobligations jof
jthe jentity.
D) Amounts jand jother jdata jrelated jto jthe jtransactions jand jevents jhave jbeen
jrecorded jappropriately.
11) A jpractitioner jis jengaged jto jexpress jan jopinion jon jmanagement's jassertion jthat jthe
jsquare jfootage jof ja jwarehouse joffered jfor jsale jis j150,000 jsquare jfeet. jThe jpractitioner
jshould jrefer jto jwhich jof jthe jfollowing jsources jfor jprofessional jguidance?
A) Statement jof jAuditing jStandards.
B) Statements jon jStandards jfor jAttestation jEngagements.
C) Statements jon jStandards jfor jAccounting jand jReview jServices.
D) Statements jon jStandards jfor jConsulting jServices.
12) In jauditing jthe jlong-term jdebt jaccount, jan jauditor's jprocedures jmost jlikely jwould
focus jprimarily jon jmanagement's jassertion jof
j
A) existence.
B) completeness.
C) allocation.
D) rights jand jobligations.
13) An jauditor jselected jitems jfor jtest jcounts jfrom jthe jclient's jwarehouse jduring jthe jphysical
jinventory jobservation. jThe jauditor jthen jtraced jthese jtest jcounts jinto jthe jdetailed jinventory
jlisting jthat jultimately jagreed jto jthe jfinancial jstatements. jThis jprocedure jmost jlikely
jprovided jevidence jconcerning jmanagement's jassertion jof
A) completeness.
B) valuation.
C) presentation jand jdisclosure.
D) existence.
E) rights jand jobligations.
4
,auditing jassurance jservices j9th jedition
Test Bank forAuditing & Assurance Services 9th Edition by Timothy
j j j j j j j j j j
Louwers, Jerry Strawser
j j j
Chap 01 9e j j
Answers Included
j
1) The jaudit jobjective jthat jall jtransactions jand jaccounts jthat jshould jbe jpresented jin jthe
financial jstatements jare jin jfact jincluded jis jrelated jto jwhich jof jthe jPCAOB jassertions?
j
A) Existence
B) Rights jand jobligations
C) Completeness
D) Valuation
2) Cutoff jtests jdesigned jto jdetect jpurchases jmade jbefore jthe jend jof jthe jyear jthat jhave
jbeen jrecorded jin jthe jsubsequent jyear jprovide jassurance jabout jmanagement's
jassertion jof
A) presentation jand jdisclosure.
B) completeness.
C) rights jand jobligations.
D) existence.
3) During jan jaudit jof jan jentity's jstockholders' jequity jaccounts, jthe jauditor jdetermines
jwhether jthere jare jrestrictions jon jretained jearnings jresulting jfrom jloans, jagreements, jor
jstate jlaw. jThis jaudit jprocedure jmost jlikely jis jintended jto jverify jmanagement's jassertion jof
A) existence jor joccurrence.
B) completeness.
C) valuation jor jallocation.
D) presentation jand jdisclosure.
4) The jconfirmation jof jan jaccount jpayable jbalance jselected jfrom jthe jgeneral jledger
provides jprimary jevidence jregarding jwhich jmanagement jassertion?
j
A) Completeness
B) Valuation
C) Allocation
D) Existence
2
,5) What jtype jof jevidence jwould jprovide jthe jhighest jlevel jof jassurance jin jan
attestation jengagement?
j
A) Evidence jsecured jsolely jfrom jwithin jthe jentity.
B) Evidence jobtained jfrom jindependent jsources.
C) Evidence jobtained jindirectly.
D) Evidence jobtained jfrom jmultiple jinternal jinquiries.
6) Which jof jthe jfollowing jmanagement jassertions jis jan jauditor jmost jlikely jtesting jif jthe
jaudit jobjective jstates jthat jall jinventory jon jhand jis jreflected jin jthe jending jinventory
jbalance?
A) The jentity jhas jrights jto jthe jinventory.
B) Inventory jis jproperly jvalued.
C) Inventory jis jproperly jpresented jin jthe jfinancial jstatements.
D) Inventory jis jcomplete.
7) An jauditor jtraces jthe jserial jnumbers jon jequipment jto ja jnonissuer's jsubledger. jWhich jof
the jfollowing jmanagement jassertions jis jsupported jby jthis jtest?
j
A) Valuation jand jallocation
B) Completeness
C) Rights jand jobligations
D) Presentation jand jdisclosure
8) An jauditor jhas jsubstantial jdoubt jabout jthe jentity's jability jto jcontinue jas ja jgoing jconcern jfor
ja jreasonable jperiod jof jtime jbecause jof jnegative jcash jflows jand jworking jcapital
jdeficiencies. jUnder jthese jcircumstances, jthe jauditor jwould jbe jmost jconcerned jabout jthe
A) control jenvironment jfactors jthat jaffect jthe jorganizational jstructure.
B) correlation jof jdetection jrisk jand jinherent jrisk.
C) effectiveness jof jthe jentity's jinternal jcontrol jactivities.
D) possible jeffects jon jthe jentity's jfinancial jstatements.
9) Which jof jthe jfollowing jtypes jof jaudit jevidence jprovides jtheleast jassurance jof jreliability?
A) Receivable jconfirmations jreceived jfrom jthe jclient's jcustomers.
B) Prenumbered jreceiving jreports jcompleted jby jthe jclient's jemployees.
C) Prior jmonths' jbank jstatements jobtained jfrom jthe jclient.
D) Municipal jproperty jtax jbills jprepared jin jthe jclient's jname.
3
, 10) Which jof jthe jfollowing jis ja jmanagement jassertion jregarding jaccount jbalances jat jthe
period jend?
j
A) Transactions jand jevents jthat jhave jbeen jrecorded jhave joccurred jand jpertain jto
jthe jentity.
B) Transactions jand jevents jhave jbeen jrecorded jin jthe jproper jaccounts.
C) The jentity jholds jor jcontrols jthe jrights jto jassets, jand jliabilities jare jobligations jof
jthe jentity.
D) Amounts jand jother jdata jrelated jto jthe jtransactions jand jevents jhave jbeen
jrecorded jappropriately.
11) A jpractitioner jis jengaged jto jexpress jan jopinion jon jmanagement's jassertion jthat jthe
jsquare jfootage jof ja jwarehouse joffered jfor jsale jis j150,000 jsquare jfeet. jThe jpractitioner
jshould jrefer jto jwhich jof jthe jfollowing jsources jfor jprofessional jguidance?
A) Statement jof jAuditing jStandards.
B) Statements jon jStandards jfor jAttestation jEngagements.
C) Statements jon jStandards jfor jAccounting jand jReview jServices.
D) Statements jon jStandards jfor jConsulting jServices.
12) In jauditing jthe jlong-term jdebt jaccount, jan jauditor's jprocedures jmost jlikely jwould
focus jprimarily jon jmanagement's jassertion jof
j
A) existence.
B) completeness.
C) allocation.
D) rights jand jobligations.
13) An jauditor jselected jitems jfor jtest jcounts jfrom jthe jclient's jwarehouse jduring jthe jphysical
jinventory jobservation. jThe jauditor jthen jtraced jthese jtest jcounts jinto jthe jdetailed jinventory
jlisting jthat jultimately jagreed jto jthe jfinancial jstatements. jThis jprocedure jmost jlikely
jprovided jevidence jconcerning jmanagement's jassertion jof
A) completeness.
B) valuation.
C) presentation jand jdisclosure.
D) existence.
E) rights jand jobligations.
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